Updated October 5, 2026. Quick answer: No. Massachusetts has no gift tax for a gift made in 2026. A Department of Revenue letter ruling, dated 1983, says “Because Massachusetts has not enacted a gift tax”, a lifetime transfer without consideration is not a taxable event. The federal annual exclusion is $19,000 per recipient for 2026.
Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: Massachusetts promissory note.
Massachusetts gift tax at a glance
| Item | What the documents say |
|---|---|
| State gift tax | None |
| What the documents say | A 1983 Department of Revenue ruling says Massachusetts has not enacted a gift tax |
| State estate or inheritance tax | Yes: a Massachusetts estate tax (M.G.L. c. 65C, section 2A), with a filing threshold of a gross estate over $2,000,000 for deaths on or after January 1, 2023 |
| Federal annual exclusion, 2026 | $19,000 per recipient |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Source | Massachusetts Department of Revenue (Wayback capture of mass.gov; live mass.gov returns 403 to scripts); Massachusetts Department of Revenue (Wayback capture of mass.gov); Massachusetts Legislature; IRS Revenue Procedure 2025-32 |
What the Massachusetts documents say
The ruling was written about income tax: it explains that property received as a gift is not includible in gross income, and then states that “the lifetime transfer of property without consideration is not a taxable event”. It is the Department’s published statement that no Massachusetts gift tax exists, and it dates from 1983.
Estates, inheritances and gifts near death in Massachusetts
The Massachusetts estate tax is imposed by the Legislature’s chapter 65C, section 2A: “A tax is hereby imposed upon the transfer of the estate” of a resident. The Department’s estate tax guide says an estate return is required for a decedent dying on or after January 1, 2023 “with a gross estate of more than $2,000,000”.
What applies to a gift from a Massachusetts resident
Federal gift tax is separate and applies wherever you live. The IRS says gifts “not more than the annual exclusion for the calendar year” are generally not taxable gifts, and Revenue Procedure 2025-32 sets the 2026 annual exclusion at “the first $19,000 of gifts to any person”. The same procedure puts the basic exclusion amount at “$15,000,000 for calendar year 2026”. The IRS adds that “The donor is generally responsible for paying the gift tax”.
An illustration: a $50,000 gift to one child in 2026 is $31,000 above the federal annual exclusion, and Massachusetts adds no gift tax of its own on top of that. CMG’s gift tax limit and Form 709 who must file pages explain the federal side, and how Massachusetts taxes 401(k) and IRA withdrawals covers a gift of retirement money.
What the documents do not say
- The only Department statement read on gift tax is a 1983 letter ruling written in an income tax context; no current Department of Revenue page read repeats it. The documents read do not state whether Massachusetts levies an inheritance tax.
Common mistakes
- Treating the absence of a Massachusetts gift tax as the absence of a Massachusetts estate tax; a $2,000,000 gross estate can require a return.
- Assuming the state answer settles the federal one, or the answer for a gift of property located in another state.
Related: the federal gift tax limit, gift tax by state, Massachusetts estate tax, and Massachusetts probate cost.
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Answer againSources
- Letter Ruling 83-103: Gift of Real Estate: https://web.archive.org/web/2023/https://www.mass.gov/letter-ruling/letter-ruling-83-103-gift-of-real-estate
- Estate Tax Guide: https://web.archive.org/web/2025/https://www.mass.gov/info-details/massachusetts-estate-tax-guide
- General Laws c. 65C, s. 2A: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter65C/Section2A
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Frequently asked questions on gift taxes (Internal Revenue Service): https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.